2019 March

March 28, 2019

There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Short Term Loan.

What Is a Short Term Loan?

A Short Term Loan is just like any typical loan, except for the fact that it must be paid back within a year a less. As with a medium or longterm loan, the decided upon lump sum of money is given upfront to the lendee, and the payment terms are set up upon signing. An interest fee is paid along with the principal balance throughout the period of one year, until the money is all paid back. This is typically done on a weekly basis, as opposed to bi-weekly or monthly.

Who is a Short Term Loan Best For?

A Short Term Loan is excellent for business owners who may not qualify for a line of credit, and who simply need a boost of working capital. This type of loan is great for people who find themselves in urgent need of cash, in as little time possible.

The Benefits of a Short Term Loan

One of the great things about the Short Term Loan is that the majority of applicants will find themselves eligible for it. Often times, even lendees with a very low credit score have the opportunity to take out this type of loan, and with a very quick and easy application process, they will find themselves with cash in hand in no time.

The Cons of a Short Term Loan

Of course, because of the lax eligibility requirements and easy application process, it can be expected that the interest rates will be higher than other types of loans. In fact, Short Term Loans have some of the highest fees of any type of business loan available. Going along with that, the payment terms for Short Term Loans are typically weekly, and certain business might find this difficult to keep up with, especially those whose revenues vary greatly week to week or month to month.

Does a Short Term Loan sound like the right type of loan for you? Get more information here.

March 25, 2019

It happens before you can even understand what’s going on. You’ve taken a small business loan here and borrowed some more money there. Pretty soon, you’ve got debt coming at you from all angles. Not only do you owe money to multiple lenders, but each debt comes with its own interest rate and payment terms. When you have multiple due dates for radically different payments, things can get out of control, fast. But all hope is not lost, as there is a great way to get all of your business’s debt under control; this solution is known as debt consolidation.

Debt consolidation, in summary, is a way to take all of your separate loans from separate lenders and combine them into one payment. This single payment will have only one interest rate, and one set of payment terms. There are a number of reasons why debt consolidation can make getting out of debt easier.

Firstly, if you have many different small business loans you’ve taken out over the years, you are probably adhering to the terms of each lender, individually. So, if one loan has a payment due on the 15th of the month, and another one is due 10 days later, you’ll find that making payments takes up a good deal of your time. You might also find that one of the loans must be paid within five years, and another one only gives you a year. Keeping track of all of these separate terms is both stressful and time-consuming. When you consolidate your debt, you can make a one-time monthly payment that you set up with one lender, and then get back to your business.

Along with the multiple loan terms, you most likely have multiple interest rates. While some lenders might have a reasonable rate, many do not. If your loan with the lower interest rate needs you to pay it off in a shorter amount of time, and one with the higher rate gives you a little more leeway, you’ll actually end up paying more money in the long run, because your money ends up trying to keep up with the loan you have less time for, instead of trying to bring down the higher interest that’s ever-accumulating.

It’s important to understand that debt consolidation does not reduce your debt. However, it definitely does help you to pay it off in a much more doable way, to one single lender with one interest rate. Also, although your principal balance stays the same, you most likely will end up paying less money in the long term, when you look at the potential reduction of interest rates.

If you’re ready to start paying off your debt in a financially smart way, check out Onebox funding’s debt consolidation program and see if it is right for you and your business. Don’t let debt drag you down, take care of it today and get back to making your business great.

March 21, 2019

There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Merchant Cash Advance.

What Is a Merchant Cash Advance?

A Merchant Cash Advance is technically not considered to be a loan. Essentially a lump sum of cash that’s given immediately over to the lendee, in exchange for a promise of a cut of future daily credit/debit card sales, plus a fee decided upon by the lender.

Who is a Merchant Cash Advance Best For?

Although this is not a necessary criterion, businesses that make the majority of their revenue from credit or debit card sales are the best candidates for this type of loan. Retail stores and restaurants, for example, can expect that many of their customers will pay with credit.

The Benefits of a Merchant Cash Advance

One of the most attractive things about a Merchant Cash Advance is the speed. After a relatively quick application process, where you will need to present documents such as your driver’s license, bank statements, credit score (even low scores are usually accepted), and tax returns, you will immediately reap the benefits of a lump of cash, in hand. Another advantage is that, during your slower months, you will pay less money back to the lender, as they take a percentage of your credit sales each day. If you make less, you pay less. Also, a Merchant Cash Advance does not require collateral, so you do not need to put up your house, car, or equipment in order to get your funds.

The Cons of a Merchant Cash Advance

While it’s always a good thing to make a lot of revenue that month, you will end up paying more back to the cash advance, as they have taken a set percentage of your daily credit/debit card sales. Also, since there is no interest and rather a fixed rate of your daily credit card sales, there is no advantage to paying off your Merchant Cash Advance early. As with a regular loan that accrues interest, there will be no benefit to you if you pay it off earlier rather than over the entire term.

Does a Merchant Cash Advance sound like the right type of loan for you? Get more information here.

March 18, 2019

In today’s world, many, if not most business owners have an online presence. Even if they are considered to be “brick-and-mortar” businesses, the majority of businesses have a least a simple website so they are locatable online. With more and more companies moving towards the direction of eCommerce, the importance of having an easy-to-use website is becoming something of a requirement.

If you don’t use your company’s website for more than just to exist on the internet, as long as it looks nice and has the information you want on there (essentially what you do and how to find you) you can get away with having a mediocre site. However, if you are making at least some portion of your money from online sales, you will need your website functioning at its utmost capacity. There are 3 main things to think about when it comes to your online shop.

1. What is the User Experience (UX) Like

When a user gets to your website, their experience needs to be excellent from entrance to purchase. If your website is the slightest bit confusing or unappealing, there is a good chance that the user will get frustrated and exit your site before he or she has the chance to buy. Can your users find the items they are searching for easily? Can they easily find their cart? Is the payment process simple and efficient? These are all questions to ask yourself when designing the UX of your website.

2. How is My Customer Service Center?

Often times, while doing online transactions, there are bumps in the road when it comes to your customers’ buying experiences. This is fine, and it’s even to be expected, but when an issue does come up, there needs to be a quick solution to your customer’s needs. You must make sure that there is someone available if a customer receives a damaged or incorrect item, or was charged the wrong price for it. Maybe he or she has questions about how to properly use the product. A good customer support section has multiple ways to get in contact with a representative (phone, email, live chat, etc.) and even an FAQ section providing answers when users have concerns, not during working hours.

3. Do I have a Reliable Host Site

You don’t need to be totally tech-savvy to know that it’s a bummer when your page loads slowly or drops out in the middle of a shopping experience. Having a reliable host company hosting your website is very important for the user experience and for your potential sales. If a user enters his or her credit card information, clicks “buy, and the page loads slowly and then drops out, they don’t know if their card was charged or not. This creates problems for everyone and is bad for business.

By checking these three things, you’ll be well on your way to a great online shopping experience for your users, and some nice sales numbers for your company as well.

Want to learn more about choosing the right small business loan for your business? Find out what Onebox Funding can do for you here.

March 14, 2019

Creating your own business is one of the most difficult, yet extremely rewarding thing you could do in your working life. Although by now there have been more attempts are creating start-ups than we can even count, not all of them have been successful. In fact, according to a study done by Statistic Brain, the failure rate of all U.S. businesses after 5 years in action was 50+%. That number increased to 70+% after 10 years.

These numbers may seem discouraging, but it’s important to remember that not every business owner has the right tools to be successful. Here, we’ll talk about the 3 most effective habits of successful business owners so you won’t find yourself falling behind when it’s time to take your business to the next level.

1. Creating Strong Networks

It might be tempting to want to keep the entire workings of your business within your own control, especially for those who are strong-willed and don’t work well with others. However, the most successful business owners understand that no one person is excellent at everything. Therefore, they surround themselves with a “dream team” of intelligent people who are very skilled at the things they might not be as strong in. By having a strong network of people with a wealth of knowledge to help you, you will be much less likely to miss something important.

2. Seeing Problems as Potential Opportunities for Growth

It’s easy to get discouraged when your original business strategy isn’t going as planned. However, the most successful business owners understand that there will always be failures and mess-ups along the way. Instead of becoming angry or discouraged when an issue comes up, successful merchants are able to look at the situation from a well-rounded point of view. They see it, not as a problem, but instead as an opportunity to make their business even better and as a learning experience of what works and what doesn’t This positive attitude is absolutely vital for a successful business.

3. Taking a Well-Earned Break

This one might seem confusing to some. How can you continue to grow your business if you are off in the Bahamas ignoring it completely? The most successful business owners know that taking a complete vacation from your business is actually the best thing you can do for it (and for your own mental health). After such a long time of sleepless nights and the stress of running a new business, it’s only human that we start to experience burnout. When you’re burnt out, you’re much less able to make well-informed decisions when it comes to your company. Do yourself, and your business, a favor and take the time to keep yourself rested and at optimum health. Having a clear head will save you a lot of grief in the long run, even if it means a few days of rejuvenation.

Want to learn more about choosing the right small business loan for your business? Find out what Onebox Funding can do for you here.

March 11, 2019

Taking out a small business loan is an excellent idea for new business owners who don’t have the cash on hand to their new company up and running, or to take it to the next level. With so many options of how to use your new funds efficiently, it might seem intimidating to choose the best use for your business. Here are the main uses of small business loans, and how they can help benefit you in your new business.

1. Equipment Financing

Almost every new business needs some sort of equipment, technology, or system put in place in order for it to get off the ground and start running. Whether you need a big brick oven for your pizza shop, a VOiP system for your call center, or even a new laptop to start your freelance writing career, you need cash to purchase these items. It’s no secret that a brand new 4×4 to carry all of your materials or a few tons of wood to begin your construction business will cost you a pretty penny. A loan for equipment financing gives you the money right there to buy the items needed to actually do your business.

2. Merchant Cash Advance

A merchant cash advance is not exactly a small business loan, but it does give you an advance of money that business owners can use for whatever business expenses they may run into. Like a loan, a lender will advance you the amount of funds you’ve requested, as a cash advance, however, the application and payment processes work a bit differently. There is no collateral needed to get an MCA, no matter your credit score. Also, the cash advance is paid back daily to the lender, as a percentage of your business’s daily sales, along with a fee.

3. Debt Consolidation

Maybe this isn’t your first go at starting up a new business, or maybe you’re being dragged down by loans from other business endeavors you’ve embarked on. Whatever the reason may be, many new business owners find themselves hesitant to try their projects again or to start something completely new because they are already weighed down by past loans they’ve taken out from different lenders. Most likely, these other loans have their own individual interest rates and fees, and the costs can get out of hand, quickly. Luckily, a small business loan for the purpose of debt consolidation is a great way to get all of your affairs organized. With this money, you can pay off all of your other loans, and then have only one to worry about, with one interest rate and one term of payment to one single lender.

Whatever your reason may be, taking a small business loan is a great way to get the cash you need, fast. Don’t let a lack of funds get in your way of creating your dream company. Take advantage of a small business loan today.

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.

March 7, 2019

Every new business endeavor you want to embark on needs money to get it started. Unless you happen to be sitting on a large pile of cash, you’re going to need a way to get your hands on some working capital, long before you begin profiting from your sales. More often than not, new business owners opt for taking out a small business loan to get those first few thousands of dollars needed to get their businesses up and running.

While it’s relatively easy to take out a small business loan, there are a lot of terms and phrases that are part of loan jargon which might be new, and a bit confusing, for new business owners. But before you become too intimidated by the new language, we’ve picked up a handful of some terminology that you may find confusing and explained them in more simple and easy-to-understand terms.

Payment Terms

The payment term of your loan is kind of like a rental agreement on an apartment, or the terms of service when you enter into a contract with someone. Just like the agreement you make with your landlord about how much to pay, when to pay it, and what happens if something goes wrong, the payment terms on your loan determine everything you need to know about it. These terms will tell you what type of interest rate you’ll have (we’ll get to this later), how high the interest rate will be, what your minimum payment will be (weekly, monthly, annually, etc.), and how long you have to pay off your loan in full.

Variably VS. Fixed Interest Rate

Unless you’ve borrowed money from a dear friend, most likely the institution lending you funds will charge you a fee for the duration of the time you are using their money. This is what an interest rate is. The rate will be done as a percentage and will be charged according to the terms of your loan (many times it accumulates monthly). If your lender gives you a fixed interest rate (let’s say of 3.5%), then you will pay 3.5% of your principal balance every time your interest is accrued, until you’ve completely paid back your small business loan. If you’ve been given a variable interest rate, that means that the percentage will fluctuate, according to the market benchmark that month. There are pros and cons to both types of interest rates, so you’ll want to do your research before choosing the best small loan for you.


APR stands for Annual Percentage Rate, and it’s basically an overall figure of how much your loan will cost you for the year. This includes any fees the lender may charge and all of the interest compounded over the year. This snapshot will tell you if the loan is worth it, and how much money you’ll need to be able to pay it back in full.

Ready to apply for a business loan with a fantastic rate? Contact us here for a free quote.

March 4, 2019

Imagine a world where you simply ask strangers online to give you money for whatever project you’d like to do. And, if they believe your idea is good enough, they’ll just give it to you. This sounds like something that’s too good to be true, right? Well, it is true. It’s called crowdfunding, and in the right circumstances, it could be a fantastic way to help fund your business to get it off the ground.

Crowdfunding started gaining popularity in 2009 when a website called Kickstarter launched an online platform. You simply create an account and describe the details of your campaign. How much money you will need, what type of project you’d like to get off the ground, and how your idea will make life better for your customers.

Of course, if your idea isn’t good enough for potential crowdfunders to see the value in putting money into it, you probably won’t see a cent. However, if you’ve managed to come up with a product that addresses unmet pain points of a large enough group, a crowdfunding campaign could be the answer to your lack of funds.

That all being said, creating a crowdfunding campaign to get yourself up and running might not be the best option for all business owners. Firstly, you do have to invest a bit of money in order to start the campaign (it’s not much, but if you have no money at all, there’s nothing really to do). Second, you do run the risk of putting lots of time and effort into your marketing campaign, and not seeing a cent.

The biggest danger with using crowdfunding as a way to start your business is that it no longer puts you in control, you become indebted to your funders. Because you give potential funders an initial timeline for your project to be finished before you begin your campaign, people giving you money will expect your finished product on the day you tell them it will be ready.  This leaves no room for flexibility when it comes to meeting all of your proposed goals.

Another issue with crowdfunding is that it only works for businesses with a tangle product. People who will fund your idea are doing it because they want a piece of the pie. Unfortunately, putting money into something they won’t receive to their doorstep when promised is not as enticing.

If you don’t find that you qualify or want to get involved with crowdfunding, never fear. There are lots of ways to get the cash you need to start your business. Taking out a small business loan is an excellent way to have immediate working capital with a rate a payment term that you’ve worked out beforehand. For anything from equipment financing to debt consolidation, a small business loan could be your fastest way to start working on your dream business.

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.